Latest news with #RichardGnodde
Japan Times
3 days ago
- Business
- Japan Times
The ultrarich move in herds. Just ask London.
Milan is the place to be these days if you're rich and can stand the pizza. Goldman Sachs Group's Richard Gnodde, who leads the firm's businesses outside North America, is among financial executives relocating from London after the U.K. changed its tax rules for foreign residents. Ann Kaplan Mulholland, a Canadian reality-TV star who owns a castle in Kent with her husband, is also making the move, though she bemoans the lack of culinary options in Italy for noncarbohydrate-eating immigrants. If the campaign against abolition of the "nondom' (nondomiciled) regime is measured by the volume of noise on each side, then the verdict is already in: Britain has made a giant mistake and will rue driving away ultrawealthy individuals who pay (on average) large amounts of tax, enrich the economy with their entrepreneurial talents and fund philanthropic works. A drumbeat of reports of notable departures has grown louder after the nondom privileges ended in early April, along with predictions of the resulting fiscal damage. The latest contribution comes from the London-based Centre for Economics and Business Research, which recently published a study commissioned by a campaign group calling itself Land of Opportunity. The report says the tax changes could cost the Treasury £7.1 billion ($9.5 billion) if 40% of nondoms — about 80,000 taxpayers — leave. Research by Oxford Economics for another recently formed lobby group named Foreign Investors for Britain estimated a cost of almost £1 billion if 32% depart. A Treasury spokesperson said it didn't recognize the figures in the CEBR report, noting that the independent Office for Budget Responsibility had "confirmed' the changes would raise £33.8 billion over the next five years. Someone is going to have egg on their face. The truth is that no one can know for sure and vindication will only come in the shape of official tax revenue data. By that time, the nondom ships will long have sailed — to northern Italy, Dubai, Switzerland, Monaco and other tax-friendlier jurisdictions. An exodus of more than 30% is well within the bounds of possibility if what tax advisers are seeing is any guide. "I absolutely wouldn't be surprised if it's 25% plus, heading into the 40% mark,' Charlie Sosna, global head of private wealth and tax at law firm Mishcon de Reya, said on Bloomberg Radio recently. The OBR used assumptions of between 12% and 25% and cautioned that its estimates were "highly uncertain.' Tax consultants have skin in the game and therefore aren't unbiased observers, but they also deal directly with clients, so they are better placed than most to have a reading on trends. And some of their criticisms of the policy changes are well-aimed. The nondom regime, which exempted temporary foreign residents from paying tax on their overseas income and gains, was an archaic system (with origins in the Napoleonic Wars) that was too complicated and didn't incentivize people to bring their money into the U.K. But the Labour government's replacement was a missed opportunity to design a system that would have been both more attractive to high-net-worth individuals and raised more revenue, Sosna told me. The revised rules give a four-year tax break on foreign income and gains. "You could be a multibillionaire that comes to the U.K., sells your company, pays no tax at all and then you move on,' he said. "And the reality is the regime that they've created is attracting those people.' At the same time, four years is too short to attract longer-term entrants that might be valuable for Britain's economy and society. Making temporary foreign residents subject to the U.K.'s 40% inheritance tax was also a "massive' problem. Many nondoms were members of global families. "You're part of a much bigger puzzle so it's not just your decision, it's your whole family's wealth,' Sosna said. At this point, discussion is probably academic: The die is cast. As the CEBR report observes, the super-rich tend to cluster. They move in herds and the drift of nondoms away from Britain is likely to have a signaling effect that will cause the trend to gather momentum. It isn't just about tax. London has already lost some cachet, with the listings market in a prolonged slump and an increase in petty crime taking the edge off the city's appeal. It's less fun being ultrawealthy in a city where you can't wear your expensive watch or jewelry on the street without undue risk. The beneficiaries are countries such as Italy, which is attracting wealthy foreign residents with an annual flat fee of €200,000 ($225,000) — something that the free-market Adam Smith Institute, among others, has called for the U.K. to emulate. Milan has much to offer: It's the financial, fashion and design capital of Italy, packed with art and historic architecture, and with Lake Como and the Alps just a short drive away. Shame about the pizza. Matthew Brooker is a Bloomberg Opinion columnist covering business and infrastructure.
Yahoo
24-06-2025
- Business
- Yahoo
Britain to lose more millionaires than any other country this year
The UK is poised to lose more millionaires than any other country this year as high taxes drive away the wealthy. Figures from advisory firm Henley & Partners predict that a net 16,500 millionaires will quit Britain in 2025, up from 10,800 last year. This will be the largest exodus of millionaires that any country has experienced over the last decade, according to the research. It comes after the Labour Government launched a wide-ranging tax raid after coming to power last year. This included abolishing the non-dom status and tightening inheritance tax rules. Growing evidence of an exodus of millionaires has prompted Rachel Reeves to consider a dramatic about-turn on her decision to charge 40pc inheritance tax on people's global assets. However, many wealthy individuals have already left. They include Richard Gnodde, Goldman Sachs' most senior banker outside the US, Nassef Sawiris, the Aston Villa co-owner, and British property tycoon brothers Ian and Richard Livingstone. As part of the latest research, Henley & Partners found that the UK is set to lose double the number of millionaires as China this year, which is projected to suffer the second-largest net outflow of 7,800. Other European countries such as France, Spain and Germany are also struggling to retain the wealthy, with net departures of 800, 500 and 400, respectively. Meanwhile, the United Arab Emirates has emerged as the biggest beneficiary with 9,800 millionaires arriving. Juerg Steffen, chief executive of Henley & Partners, said: 'This isn't just about changes to the tax regime. It reflects a deepening perception among the wealthy that greater opportunity, freedom and stability lie elsewhere. 'The long-term implications for Europe and the UK's economic competitiveness and investment appeal are significant.' The research relies on sources such as tracking the movements of 150,000 high-net-worth individuals globally, including through LinkedIn data, property registers and company filings. Other experts warn that it is impossible to say with any certainty how many non-doms and British entrepreneurs have left until tax data becomes available in 18 months' time. However, recent analysis has suggested the UK is already battling an exodus of wealthy entrepreneurs. This emerged in a new study from Bloomberg, which found that around 4,400 business leaders have quit the country in the past year. The debate over Britain's wealthy was renewed on Monday when Nigel Farage's Reform UK party said it would charge non-doms £250,000 to live in the UK. The fee would shield them from some UK taxes, as the proceeds would circumvent the Treasury and be paid directly to the poorest 10pc of Britons. As for the trend of millionaires leaving Britain, some experts claim it has been ongoing for the past decade. Trevor Williams, a former chief economist at Lloyds Bank, said: 'Since 2014, the number of resident millionaires in the UK dropped by 9pc compared with the world's 10 wealthiest countries' global average growth of more than 40pc. 'Over the same period, the US saw a 78pc increase in millionaires – the fastest wealth growth [among these countries].' However, others dispute the idea that Britain is experiencing a flight of wealthy people, with Tax Justice UK branding it a 'myth'. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Sign in to access your portfolio
Finextra
28-05-2025
- Business
- Finextra
Checkout.com billionaire founder quits London for Monaco
The billionaire CEO of payments processor Guillaume Pousaz has switched his country of residence from the UK to tax haven Monaco. 0 Switzerland-born Pousaz, who founded in 2012 and is now worth an estimated $6 billion, is making the move just a year after arriving in London from Dubai, according to the Telegraph. There is no indication that the company's London headquarters are affected by its boss's move. The switch sees Pousaz avoid changes to the UK's non-dom regime and increased taxes on capital gains, which were introduced by Chancellor of the Exchequer Rachael Reeves as part of last year's Budget. He is not the first of the super-rich elite to abandon the UK since the changes: Goldman Sachs' vice chairman in Europe, Richard Gnodde, quit London for Milan earlier this year, while steel giant Lakshmi Mittal is also rumoured to be leaving. provides merchants with a single platform combining payments, fraud monitoring and analytics. It counts big names such as Alibaba, Ikea, Remitly and Wise among its clients. In 2022, the firm hit a $40 billion valuation on the back of a whopping $1 billion Series D funding round. The firm subsequently saw its valuation fall during the post-pandemic period but is targeting full-year profitability in 2025 after a strong finish to 2024 that saw 45% year-on-year net revenue growth in its core business.
Times
13-05-2025
- Business
- Times
Goldman's Richard Gnodde: a poster boy for the UK non-dom exodus
Richard Gnodde is a Davos regular. At the annual jamboree of world business leaders in the snow-capped Swiss mountains, the Goldman Sachs veteran has won a reputation for being able to field questions on global commerce. But at this year's gathering in January, Gnodde, 65, found himself talking about his own career after the Wall Street bank announced that he would be stepping down as chief executive of its international arm to become vice-chairman. Gnodde had spent two decades becoming one of the highest-profile bankers on London's financial scene. In his clipped South African accent, he proclaimed he was 'thrilled to have the remit to really operate broadly around the world and spend time with our people, our clients'. What he did not say was
Times
13-05-2025
- Business
- Times
Rolly van Rappard, co-founder of CVC Capital, could join UK exodus
One of Britain's best-known private equity tycoons is reportedly planning to leave the UK amid reforms to tax rules. Rolly van Rappard, the co-founder of CVC Capital, is said to be considering a move from London to Milan. The billionaire, who chairs CVC, has not made a final decision and is considering his options, according to Private Equity News, which first reported the plans. There are concerns that influential high-net-worth business leaders are leaving the UK amid government tax reforms, including to the 'non-dom' regime and inheritance tax rules on overseas trusts. The speculation comes after reports that Richard Gnodde, the Goldman Sachs veteran, is leaving his homes in London and Hampshire to set up a base in Milan. Changes to non-dom rules
